Bitcoin liquidations surged to $2.56 billion in recent days as crypto markets sold off alongside equities and precious metals. The move reflects rising risk-off sentiment driven by macro uncertainty, AI trade concerns, and shifting expectations around U.S. monetary policy.
Data from CoinGlass shows both long and short Bitcoin positions were wiped out during the downturn. While far below the $19 billion liquidation wave seen after President Donald Trump announced new China tariffs, analysts say the latest sell-off highlights crypto’s growing sensitivity to broader market stress.
Bitcoin’s decline accelerated as investors reassessed exposure to volatile assets. Fresh concerns around the AI trade and fallout from Trump’s nomination of Kevin Warsh as Federal Reserve chair added pressure, triggering sharp moves across risk markets.
After hitting a record above $126,000 earlier this year, Bitcoin dropped as low as $104,782 in October and has failed to recover those highs. Prices fell more than 6% over the weekend, trading near $78,396, with thin liquidity amplifying downside moves.
Analysts note external macro forces remain the dominant risk. Disappointing Microsoft earnings reignited fears of slowing AI investment, while expectations of a more hawkish Fed stance sparked historic sell-offs in gold and silver, further weighing on sentiment.
Market participants say investors were already positioned defensively and used last week’s news flow as a catalyst to reduce exposure. With volatility elevated, crypto markets remain closely tied to developments in equities, AI spending, and central bank policy.
